Working Paper
Foreign Direct Investment and Trade in the Southern African Development Community
We use a modified gravity model to estimate the relationship between trade and foreign direct investment (FDI) in the Southern African Development Community (SADC). We find evidence of a significant causal relationship from SADC’s exports to inward...
Working Paper
Component Trade and China’s Global Economic Integration
China’s engagement in the so-called international fragmentation of production – namely ‘cross-border dispersion of component production/assembly within vertically integrated manufacturing industries’ – has become an increasingly important form of its...
Working Paper
Measuring illicit financial flows
Illicit financial flows have recently attracted the attention of academia, practitioners, and multilateral organizations who consider them harmful to economic development. Some observers suggest that many of these flows occur via the misinvoicing of...
Journal Article
The social profitability of rural roads in a small open economy
The effects of a rural roads programme depend on labour mobility, how the programme is financed, and agglomera-tion economies. If financed by a rural poll tax and cross-price effects and agglomeration economies are sufficiently small, the wage will...
Working Paper
The Determinants of Regional Manufactured Exports from a Developing Country
In this paper, the question of the location of exporters of manufactured goods within a country is investigated. Based on insights from new trade theory, the new economic geography (NEG) and gravity-equation modelling, an empirical model is specified...
Working Paper
The Geographical Location of Manufacturing Exporters in South Africa
This paper provides empirical evidence on the location of export-oriented manufacturing firms in Africa (South Africa), and on how the patterns of location has changed over the past decade after the country embarked on trade liberalization. It is...
Working Paper
Rural roads and urban agglomeration economies
Do urban agglomeration economies enhance the social profitability of rural roads? When all goods are traded at parametric world prices, lower transport costs benefit villagers. Urban activities and welfare are unaffected if labour is immobile, but...
Working Paper
International Trade, Location and Wage Inequality in China
Models of economic geography predict that transportation costs directly affect demand for goods and the supply of intermediate inputs. One of the reasons that international trade is concentrated in the coastal provinces of China is that they have...
Working Paper
Export Diversity and Regional Growth
This paper provides empirical evidence on the relationship between exports, and in particular export diversity, and regional growth in a developing country context. Using export data for 19 sectors from 354 subnational (magisterial) districts of...